Agenda item

Report from the Interim Director of Policy, Strategy and Engagement.

Recommendations:

That Cabinet:

1.    Endorse the projects for submission to South Yorkshire Mayoral Combined Authority for award of LGF for 2026/27 as follows:

a.    Local Business Support

                                      i.     £946,845 (£464,915 revenue and £481,930 capital) for sub-regional business support supporting three strands of Launchpad (start-up support), Productivity and Low Carbon.

                                     ii.     £666,655 (£110,000 revenue and £556,655 capital) for Shop Unit Grants.

                                   iii.     £60,000  to support Rotherham Town Centre Markets.

                                   iv.     £36,559 for Social Value to increase opportunities for local businesses.

b.    People and Skills

                                      i.     £441,203 for a skills programme incorporating Ambition (children and young people), Core Skills (community-delivered basic skills training) and Advance (support to progress in work.)

                                     ii.     £300,781 for Young People’s Skills Development.

c.     Communities and Place

                                      i.     £424,219 for Events, delivering a wide-ranging programme of civic and cultural events and festivals.

2.    Agrees to delegate authority to the Director of Policy, Strategy and Engagement, in consultation with the Leader of the Council, to determine revised and final allocations for the Local Growth Fund. This is to include provision for other eligible actions within the use of the fund should it not be possible to achieve full spend of the grant through the allocations above.

Consideration was given to the report which set out proposals and recommendations for the use of Rotherham’s £2.95 million allocation from the Local Growth Fund (LGF) in 2026/27. For 2026/27, LGF would operate as a continuation of the UK Shared Prosperity Fund (UKSPF), forming part of a further transitional programme. This transitional year built upon the £10.48 million of UKSPF that the Borough received over 4 years from April 2022 to March 2026.

UK Shared Prosperity Fund (UKSPF), introduced by Government as the successor to the European Structural Funds, had been a major source of investment for Rotherham since 2022. With the introduction of an integrated settlement for South Yorkshire Mayoral Combined Authority (SYMCA) from 2026/27, UKSPF had been replaced by a new Local Growth Fund. Rotherham received £7.2m of UKSPF over 3 years from April 2022 to March 2025, comprising £5.6m revenue and £1.6m capital (including £400,000 specifically for rural areas).

In 2025/26, the Government provided a further transitional year of UKSPF, albeit at a reduced level compared to 2024/25. UKSPF investments in this year were required to align with the Government’s 5 national missions. Rotherham received £3.28 million from the SYMCA allocation for 2025/26, consisting of £2.86 million revenue and £420,000 capital. Some of the outputs from this funding were listed in paragraph 1.4 of the report. From 2026/27, the Local Growth Fund provided a 3 year allocation (4 years for capital) to SYMCA for activity broadly focused on economic development and regeneration. The allocation was approximately £15.1 million in 2026/27, with £15.8 million in 2027/28, £19.6 million in 2028/29 and £16.9 million capital in 2029/30. 

Rotherham had been allocated £2.95 million in 2026/27, comprising £2.09 million revenue and £858,585 capital. This represented a reduction of £328,447 (around 10%) compared to the 2025/26 allocation. Funding in 2026/27 would continue to focus on the priorities of supporting local business, people and skills, and communities and place. A summary of the proposals for each theme was set out in the report, with a more detailed breakdown included at Appendix 1. The recommendations set out the allocations also detailed how the funding would be allocated.

Resolved:

That Cabinet:

1.    Endorse the projects for submission to South Yorkshire Mayoral Combined Authority for award of LGF for 2026/27 as follows:

a)    Local Business Support

i)               £946,845 (£464,915 revenue and £481,930 capital) for sub regional business support supporting three strands of Launchpad (start-up support), Productivity and Low Carbon.

ii)              £666,655 (£110,000 revenue and £556,655 capital) for Shop Unit Grants.

iii)            £60,000 to support Rotherham Town Centre Markets.

iv)            £36,559 for Social Value to increase opportunities for local businesses.

b)     People and Skills

i)               £441,203 for a skills programme incorporating Ambition (children and young people), Core Skills (community-delivered basic skills training) and Advance (support to progress in work.)

ii)              £300,781 for Young People’s Skills Development.

c)    Communities and Place

i)               £424,219 for Events, delivering a wide-ranging programme of civic and cultural events and festivals.

2.    Agrees to delegate authority to the Director of Policy, Strategy and Engagement, in consultation with the Leader of the Council, to determine revised and final allocations for the Local Growth Fund. This is to include provision for other eligible actions within the use of the Fund should it not be possible to achieve full spend of the grant through the allocations above.